What extent could government policies affect house pricesIn 2009 British house prices has first to their annual decline since at least 2002. According to the British media, home prices in London actually faced the worse prices down 5.3%. The London Housing Prices are perhaps one of the most popular issues of discussion in UK. To some extent this is due to the fact housing prices have nearly trebled since the mid 1990s. Because of this landlords have seen huge gains of wealth which has left with a apparently impossible task for those trying for buying a house.Since the Wall Street crash in 1929, the economies situation in 2009 was described as the worst financial crisis. The unemployment, credit crunch, failing banks and businesses led the economy into a prolonged recession. The UK housing market is cyclical and is quite familiar with the booms and busts of the economic cycle. The UK housing market is very fundamental sector in the economy. The country performance as a whole is closely related with the performance of the housing market.
